Agriculture, Economic Development and Tourism
In view of the potential imposition of new United States tariffs on citrus exports:
(a) (i) How many jobs in the provincial agricultural sector are currently dependent on citrus and other produce exports to the United States and (ii) what is the estimated economic value of these exports to the provincial economy and (b) what impact does his Department project the proposed US tariffs will have on employment and on agricultural exports in the province?
(a) (i) The Western Cape agricultural jobs that will be affected by the increase of tariffs in the USA are about 160 966 jobs, with citrus accounting for 22% (35,000 jobs) and 78% (125 966) in the other agricultural products.
(ii) In 2024, the Western Cape agricultural (incl. forestry & fisheries) exports to the United States of America (USA) reached R3.5 billion , and the citrus (HS0805) export contributed R1.8 billion.
The top 10 Western Cape agricultural exports to the USA markets were oranges valued at R855.5 million (18.8% share), followed by mandarins at R756 million (12% share), wine in container holding less or equal 2 litres value at R565 million (9%), apple juice unfermented at R449.6 million (7% share), rock lobsters and other sea crawfish amounting to R391.1 million (6% share), dried peaches, pears, papaws, tamarinds and other edible fruit accounting for R325.8 million (5% share), leather (further prepared after tanning) at R251.8 million (4% share), fresh grapes at R233.5 million (4% share), vegetable seed amounting to R202 million (3% share) and plums and oranges at R184.5 million (3% share) in 2024 (mostly traded under the preferential tariff for AGOA countries). These are predominantly grown in the WC province and significantly contribute to the national agricultural export basket.
Over the past five years, the Western Cape experienced a significant annual growth in agricultural exports to the USA for commodities such as dried peaches, pears, papaws, tamarinds, and other edible fruit (combined) account for 87.8%, followed by fresh grapes (50%), vegetable seed (32.3%), mandarins (21.6%) and oranges (18.8%). Therefore, an increase in their tariffs can cause a reduction in the WC export supply to the USA, and this eventually leads farmers to downscale production and perform limited post-harvest related job activities, with the result that farm labourers/ agri workers will be retrenched.
(b) The USA accounts for about 4% of RSA’s agricultural exports, achieved through the duty-free access (i.e. AGOA preferential treatment, 0% duty-free access), with WC accounting for 74% of these exports in 2024.
The new 30% tariff hikes (April 2025) by the USA government on South African exports to the USA markets will have both indirect and direct implications.
The 30% tariff hike on agricultural exports has the potential to reduce export volumes to the USA, decline in farming investment and foreign earnings, low employment rates within the sector (driven by a decline in production), and farm profits will be negatively affected.
